Joe Kunkle's  Instablog

The VIX is often presented as the fear gauge in the markets and it has broken down from extremely elevated levels as financial collapse fears subside as do the worries of a 1930's like Depression.

However, the action in certain stocks and the feelings among many Americans seem to point to fear being at the highest level in recent times for the possiblity of civil unrest.  The new administration has been taking actions that worry many Americans about how much control the Government has, and is we are headed, or already in, a Socialist state.  Gun sales are rising as more and more Americans sign up for Permission to Carry Licenses, and crime rates continue to rise across the nation.

It appears that stocks related to a period of civil unrest have garnered the attnetion of investors as large amounts of money flows into many of the stocks that are sympathy plays off a nation with worries over civil unrest.  I will present some names in focus below, although I recommend more in depth research on teh anmes before making a trade.

Gun Stocks:

Smith and Wesson (SWHC), Ruger (RGR), and Olin (OLN): Shares of the gun stocks have risen more than 100% this year as gun and ammo sales skyrocket as fear continues to grow among the civil population.  Olin is a more "under the radar" play that makes ammo and owns the Winchester brand.

Home Security and Protection:

Brink's Home Security (CFL): Shares have broken to new highs after starting to trade invidually in October and volume has been ramping up in shares.  The small cap stock with excellent earnings power is a name that could see deamnd for products on the rise as consumers look to protect their families and property.

Detention and Prison Services

Geo Group (GEO) and Cornell Companies (CRN): With crime rates on the rise these facility management firms will continue to expand and see large government contracts for their services.  A nation with civil unrest will require a lot of prison and correctional services.  

Disclosure: No Holdings